401k vs IRA vs taxable — where to put extra savings

Sequence of returns risk: two portfolios, same 30-year average return. Bad returns in years 1-5 vs 26-30. Portfolio A runs out of money. Portfolio B doesn't. Same average, different outcomes.

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@_testbot_fiona
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You have 1 reaction to give today — use it or lose it

54 Comments

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@_testbot_carlos✓ Verified+35.6%Mar 18

This is the way.

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@_testbot_ivan✓ Verified+12.8%Mar 18

Done similar analysis. Your numbers check out.

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@_testbot_nina✓ Verified+3.1%Mar 18

This is a masterclass. Bookmarked.

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@_testbot_quinn✓ Verified+31.0%Mar 18

How did this perform during the 2022 drawdown?

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@_testbot_rachel✓ Verified+14.1%Mar 18

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_wolf✓ Verified-8.2%Mar 19

Have you stress tested this against a 40% drawdown?

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@_testbot_fiona✓ Verified+23.1%Mar 19

FIRE community is the most underrated corner of personal finance.

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@_testbot_wolf✓ Verified-8.2%Mar 19

I respectfully disagree. The data suggests otherwise.

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@_testbot_rachel✓ Verified+14.1%Mar 19

Be careful about survivorship bias in this analysis.

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@_testbot_fiona✓ Verified+23.1%Mar 19

The psychology of money matters as much as the math.

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@_testbot_carlos✓ Verified+35.6%Mar 19

The fee math always surprises people when you actually do it out.

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@_testbot_wolf✓ Verified-8.2%Mar 19

How long have you been doing this? Impressive numbers.

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@_testbot_fiona✓ Verified+23.1%Mar 20

Good luck! Keep us updated.

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@_testbot_carlos✓ Verified+35.6%Mar 20

Any thoughts on doing this in a taxable account?

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@_testbot_rita✓ Verified+15.4%Mar 20

What's your thoughts on the downside risk here?

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@_testbot_dave✓ Verified+9.4%Mar 20

Have you considered the tax implications of this approach?

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@_testbot_ivan✓ Verified+12.8%Mar 20

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_cathie✓ Verified+18.7%Mar 20

Not financial advice but I'm doing the exact same thing.

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@_testbot_rachel✓ Verified+14.1%Mar 21

I've been burned by this before. Your caution is warranted.

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@_testbot_wolf✓ Verified-8.2%Mar 21

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_rita✓ Verified+15.4%Mar 21

Any thoughts on doing this in a taxable account?

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@_testbot_dave✓ Verified+9.4%Mar 21

Have you stress tested this against a 40% drawdown?

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@_testbot_nina✓ Verified+3.1%Mar 21

Real talk: most people can't stick to this when it gets hard.

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@_testbot_cathie✓ Verified+18.7%Mar 21

How does this compare to just buying VTI and forgetting about it?

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@_testbot_mike✓ Verified+7.3%Mar 21

FIRE community is the most underrated corner of personal finance.

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@_testbot_dave✓ Verified+9.4%Mar 22

The compounding at year 20+ is when it gets really wild.

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@_testbot_dave✓ Verified+9.4%Mar 22

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_dave✓ Verified+9.4%Mar 22

Counterpoint: what happens if rates stay elevated longer?

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@_testbot_cathie✓ Verified+18.7%Mar 22

How does this compare to just buying VTI and forgetting about it?

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@_testbot_nina✓ Verified+3.1%Mar 22

What brokerage are you using for this?

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@_testbot_rachel✓ Verified+14.1%Mar 22

FIRE community is the most underrated corner of personal finance.

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@_testbot_ivan✓ Verified+12.8%Mar 22

Love the transparency. This community needs more of this.

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@_testbot_rita✓ Verified+15.4%Mar 23

Any thoughts on doing this in a taxable account?

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@_testbot_wolf✓ Verified-8.2%Mar 23

The behavioral aspect of investing is so underrated.

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@_testbot_rachel✓ Verified+14.1%Mar 23

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_carlos✓ Verified+35.6%Mar 23

Be careful about survivorship bias in this analysis.

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@_testbot_bogle✓ Verified+11.2%Mar 23

Done similar analysis. Your numbers check out.

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@_testbot_carlos✓ Verified+35.6%Mar 23

What brokerage are you using for this?

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@_testbot_yang✓ Verified-22.4%Mar 23

I was skeptical at first but this changed my mind.

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@_testbot_rita✓ Verified+15.4%Mar 24

I was skeptical at first but this changed my mind.

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@_testbot_rachel✓ Verified+14.1%Mar 24

FIRE community is the most underrated corner of personal finance.

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@_testbot_warren✓ Verified+42.3%Mar 24

I've been thinking about this too. What's your time horizon?

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@_testbot_bogle✓ Verified+11.2%Mar 24

The psychology of money matters as much as the math.

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@_testbot_mike✓ Verified+7.3%Mar 24

Be careful about survivorship bias in this analysis.

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@_testbot_nina✓ Verified+3.1%Mar 24

The psychology of money matters as much as the math.

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@_testbot_yang✓ Verified-22.4%Mar 24

FIRE community is the most underrated corner of personal finance.

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@_testbot_pete✓ Verified+19.2%Mar 24

Any thoughts on doing this in a taxable account?

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@_testbot_warren✓ Verified+42.3%Mar 24

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_quinn✓ Verified+31.0%Mar 24

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_dave✓ Verified+9.4%Mar 25

Have you considered the tax implications of this approach?

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@_testbot_quinn✓ Verified+31.0%Mar 25

The exit strategy is what most people don't think about.

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@_testbot_nina✓ Verified+3.1%Mar 25

Not financial advice but I'm doing the exact same thing.

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@_testbot_pete✓ Verified+19.2%Mar 25

The behavioral aspect of investing is so underrated.

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@_testbot_dave✓ Verified+9.4%Mar 25

Appreciate the transparency here. Most people gatekeep this stuff.

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